Allstate Renames Two Florida Subsidiaries

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July 7, 2009 Tuesday 04:45 PM EST

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Allstate Renames Two Florida Subsidiaries

Alyn Ackermann

ST. PETERSBURG, Fla.

Allstate Insurance Co. has renamed two Florida property/casualty subsidiaries, the company said.

Allstate Floridian Insurance Co. is now Castle Key Insurance Co., and Allstate Floridian Indemnity Co. is now known as Castle Key Indemnity Co., the company said.

"We anticipate a seamless transition for customers," Mike Sheely, field vice president for Allstate Insurance Co.'s Florida region, said in a statement.

The name changes were made to reflect the fact that the two are separately capitalized from Allstate Insurance Co., and were approved by the Illinois Department of Insurance and accepted by the Florida Office of Insurance Regulation, the company said.

The Castle Key companies have extensive reinsurance for the 2009 hurricane season to cover projected windstorm losses on their approximately 225,000 policies, Allstate said.

"Castle Key is committed to continuing to serve our customers in Florida, and is in a strong financial position to pay claims," Sheely said in the statement.

Allstate's 1,100 agents in Florida represent Castle Key, and will continue to serve these customers.

Earlier this year another Allstate subsidiary in Florida, Encompass Floridian Insurance Co., notified policyholders that it is pulling out of the property insurance market in the state (BestWire, Feb. 20, 2009).

The Castle Key Group currently has a Best's Financial Strength Rating of B+ (Good). The Allstate insurance Group currently has a Best's Financial Strength Rating of A+ (Superior).

Shares of Allstate Corp. were $23.93 in afternoon trading on July 7, down 3.2% from the previous close.

In 2008, the top five writers of homeowners' multiperil in Florida, according to A.M. Best's state/line data, were: State Farm Group, with an 18.7% market share; Citizens Property Insurance Corp., 17.1%; Universal Insurance Holdings Group, 7.6%; USAA Group, 5.4%; and Tower Hill Group, 4.7%.

(By Alyn Ackermann, senior associate editor, BestWeek: [email protected])

July 8, 2009